March 2011 Archive

Michael Porter famously wrote that companies differentiate themselves by performing a unique set of activities from their competitors' or by performing the same activities differently.

Here are some numbers: 86% of companies say customer experience is a top strategic priority for 2011; 76% seek to differentiate based on customer experience; 46% have a companywide program for improving customer experience currently in place and another 30% are actively considering it; and 52% have a voice of the customer program in place with close to 30% more actively considering it.

With the majority of companies focused on improving customer experience, how can a company expect to differentiate on it? Because there remains a tremendous amount of lip service and intellectual dishonesty about what it takes. Let me give a few examples:

Friendly agents game the numbers. Although not able to answer the two questions that I had, a super-friendly phone agent at a major telecommunications firm ended the conversation by asking: “We aim to not only meet your expectations but to exceed them. Have I done that today?” From the tone of the agent’s voice and the question asked, it’s clear that someone at the company is thinking about customer experience. However, the gaming of the question indicates that the company’s culture has a long way to go to actually improve the experience beyond the superficialities.